Bangladesh Bank has appointed an observer at Islami Bank Bangladesh PLC amid ongoing tensions surrounding the country’s largest private commercial bank.
The decision was taken on Wednesday evening following a meeting of Association of Bankers, Bangladesh (ABB) with managing directors of different banks, held after a separate meeting with Bangladesh Bank Governor Md Mostaqur Rahman.
Bangladesh Bank Executive Director Md Ashraful Alam has been appointed as the observer for Islami Bank, according to Assistant Spokesperson Mohammad Shahriar Siddiqui.
He said the appointment was made under the authority of the Bank Company Act.
Earlier, on 24 May ahead of Eid-ul-Adha, Islami Bank Chairman M Zubaidur Rahman and Managing Director Md Omar Faruk Khan resigned.
On the same day, former Bangladesh Bank Deputy Governor Khurshid Alam was appointed as the new chairman.
Following the leadership changes, a group of people staged protests in front of the bank’s head office under the banner “Customer Forum,” opposing the appointments.
Police were later deployed to disperse the demonstrators during one of the protest days.
In recent days, reports suggested that customers withdrew around Tk3,000 crore from the bank, a development that also drew attention in Parliament.
Meanwhile, opposition leader and Jamaat-e-Islami Ameer Shafiqur Rahman alleged that attempts were being made to “take over” the bank. In response, Finance Minister Amir Khosru Mahmud Chowdhury said there were efforts to destabilise the institution for political gain.
Speaking after the ABB meeting, its Chairman Masrur Arefin said the situation at the country’s largest bank needed urgent resolution through dialogue among stakeholders.
